Monday, 19 September 2016

Times Have Changed

This is not 2008.In 2008 we used to store our savings in cash currency and we relied on cash transactions. Everyone of us Zimbabweans know that there has been a fundamental changes both on the currency and the way we carry out our day to day transactions.

The introduction of the bond notes by the Reserve Bank of Zimbabwe is an acknowledgement of the changes in financial habits of the people and the advancement of technology in the banking sector. It is what the negative ones amongst us have failed to understand. It is 2016 and not 2008 let us all remind them.

Bond Notes Are Not Zimbabwean Dollars

Bond notes as good as the USA dollar

Bond notes are here and l can safely say that they are not the Zimbabwean dollar in disguise. The Reserve bank has said that too but there is a lot of unwarranted political noise from different quarters. People are being paid to demonstrate against the bond notes.

The Financial Sector Has Evolved

In 2008 we used to rely on checks,money orders, wire transfer and debit cards. These form of financial services resulted not only in high transaction charges but a distortion in rates between different form of the services.

Our banking system has evolved since 2008. As l write local mobile phone companies has created products and applications which allow us to receive and make payments using our phones. These fundamental changes now allows us to transcact on the street and you do no even need to have a bank account in some cases . The transactional costs have fallen or are no longer there.

Mobile Banking is Here

The arrival of mobile banking make it impossible for the traditional bank to manipulate the rates on transactions. Manipulation of the exchange via the traditional banks, was the tool used to attack the Zimbabwean dollar. The exchange rate does not apply as the bond note ranks the same on value as the USA dollar.

Manipulation Is No Longer Possible

International credit cards are now part of our banking toolsThe situation of the currency attack in 2008 was the result of foreign manipulation of the exchange rate by the hostile, colonial and traditional banking sector reacting to the land reforms. The traditional banking sector was open to foreign manipulation by external forces and the Reserve Bank of Zimbabwe has tighten up its monitoring and control of banks.

Thanks to the Sanctions

Our economy is now more integrated with the global finance markets. We should thank the sanctions against Zimbabwe which has allowed our banking sector to reform by looking inwards. This has allowed our banking sector to bust the sanctions for them to survive. Our banking system has evolved into an effective sanctions busting tool.

The bond notes, just like the bond coins will serve the purposes perfectly. The people of Zimbabwe will accept the notes just as we supported the bond coins. The bond notes are part of the Reserve Bank of Zimbabwe strategy to develop the banking sector.

The Benefits from the Bond Notes

There is an immediate benefit to exporters and those receiving remittances from abroad. Exporters will get 6% on top of their export payments and beneficiary of amount remitted will get a 3% on top of the amount sent to them.These incentives commences on October 1.

These incentives are there to encourage cash to flow into the formal banking channels. The government hope this will improve the cash supply and availability in the economy.